Skip to main content

Sensex EPS for FY11 and Sensex Target

masterandstudent-epsIt is earnings season again and various institutions and brokerages have come out with their Earnings forecast for Sensex 30 companies for FY11. Most of them have come out with their estimates in the range or Rs.1100-Rs.1250 for FY11 and Sensex target of about 21000, which is about 20% up from current levels of 18k.

Number crunching:
CLSA – FY 11 EPS Rs 1,046.
Morgan Stanley – FY 11 EPS Rs 1,232.
Deutsche Bank – FY 11 EPS Rs 1,10.
UBS – FY 11 EPS Rs 1,146.
Edelweiss – FY 11 EPS Rs 1,080.
Merrill – FY 11 EPS Rs 1,100.

What does these numbers indicate for an investor?

Looking at the above numbers , the consensus EPS is around Rs.1100 and the Sensex at the higher P/E band of 20, would be at 21k, which is not totally unjustified considering higher growth and EPS for the year FY12.Hence any sharp decline would be a buying opportunity, particularly below 15 times forward earnings i.e., below 15k.

But this correction isn't coming yet and keeps elusive.Instead of timing the market, one could always look for investments in Mutual Funds through SIP route, so that one need worry about ups and downs of the markets and still be able to gain in the markets.
Labels:

Comments

  1. InvestradingApril 10, 2010

    Thanks for the useful info. But still waiting for the correction !

    ReplyDelete
  2. Stock Market BlissApril 11, 2010

    Current trend is positive, it seems markets are headed higher.

    ReplyDelete
  3. Bee InvestorNovember 14, 2010

    Well written, 21k was well achieved.

    ReplyDelete

Post a Comment

Popular posts from this blog

Your Bill Amounts Are Going To Increase From June 1, 2016

Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994. Union Finance Minister, Arun Jaitley, in his budget announcements proposed to impose a cess, called the Krishi Kalyan Cess, @ 0.5% on all taxable services. The present rate of service tax will be hiked to 15 per cent from June 1, 2016, from 14.5 per cent. Take a look at what gets expensive:



Phone Bills: Your phone bills are going to go up. So, pay a good 15 per cent now on service tax on phone bills.

Restaurant Bills :If you are dining in a restaurant that already has service tax applicable, you are going to pay more on your eating out. Though 0.5 per cent on a single bill may not mean much, frequent diners may end-up paying a lot during the year.

Travelling: You will have to pay more for air travel, as there is a service tax on tour operators and travel agents.

…
2 comments
Read more

What is Gold ETF - Gold Bees, Reliance Gold,Kotak Gold

What is Gold Bees or Gold ETF?

Gold ETFs are open-ended mutual fund schemes that will invest the money collected from investors in standard gold bullion (0.995 purity). The investors' holding will be denoted in units, which will be listed on a stock exchange.They provide returns that would closely track the returns from physical gold in the spot market.

An investor can buy and redeem the units either directly from the mutual fund or from the stock exchange.Presently there are many Gold ETFs traded in NSE India. Some of the listed Gold ETFs are GoldBees,Reliance Gold,Kotak Gold,UTI Goldshare



Why choose Gold?
Gold holds its own in any investment evaluation on its strengths as a hedge against inflation, value in the event of political uncertainties and its traditionally negative co-relation with other asset classes such as stocks, fixed income securities and commodities.

The value of goods and services that gold can buy has remained stable unlike currencies that have seen significant…
54 comments
Read more

What is NIFTY BEES - ETF?

NIFTY BEES - is the first ETF (Exchange Traded Fund) in India, which seeks to provide investment returns that closely correspond to the total returns of securities as represented by the S&P CNX Nifty Index. It gives you the most diversified exposure at lowest possible unit size. Approximately value of Nifty bees will be 1/10th value of the prevailing Nifty price.

ETFs are one of the latest financial innovations and any new concept takes time to be known widely. Globally it took more then five to seven years before it could be of any significant size. In India, it was introduced with Rs 21 crore in size , a fraction of the mutual fund industry, it has come far with more than Rs 700 crore in size with six ETFs.




The Nifty BeES also scores over other index funds due to its low tracking error and expense ratio, apart from easier tradeability as it is listed in the NSE. One can also consider doing an SIP in Nifty BeES.

Some of the reasons to invest in Nifty Bees : Investing in Exchange …
45 comments
Read more